NACEDA Executive Director Jane DeMarines: Bailout should not reward perpetrators; should be matched with help for homeownersMortgagePress.comNACEDA, Jane DeMarines, economic bailout, Community Development Corporations, Real Estate Mortgage Investment Conduit LAws
As the representative of more than 2,400 Community Development
Corporations, non-profits working on behalf of low-income
populations nationwide, we are appalled and saddened to see federal
government bail-out efforts reward those who have largely created
the economic mess the country is currently reeling from.
Many of the alternative proposals that lessen the direct cost to
taxpayers (collateralized loans to banks) are a better alternative
and would not require the federal government to own the bad
loans.
We strongly believe a bailout should include direct grants to
homeowners who have been forced out of their homes as a result of
the poor mortgage products foisted on them from the lending
community.
NACEDA urges Congress to consider the following:
• Change REMIC (Real Estate Mortgage Investment Conduit)
Law to allow work-outs of Mortgage securities, now prevented, which
would solve 95 percent of the current problem.
• Extend CRA (Community Reinvestment Act) to all
Institutions that receive bailout funds.
• Set-aside a percentage of bailout funds for homeowners who
have been victimized by poor lending products.
• Set aside a percent of funds for community development
corporations* who actively are providing foreclosure counseling to
disproportionately affected low-income communities and communities
of color.
• Set-aside a percent of bailout funds for communities and
land banks to purchase foreclosed properties to be used for
affordable housing.
For more information, visit www.NACEDA.org.
